ASIC has permanently banned mortgage brokers Xiaoyi (Jeff) Zhao, Jun (Leo) Ma and Liang (Victor) Zhang from engaging in credit activities.

Messrs Zhao and Ma were mortgage brokers and directors of Sydney Global Investment Pty Ltd, which formerly operated a finance brokerage business in Sydney that traded as X Finance Group.  Mr Zhang was also a mortgage broker and lending manager at X Finance Group.

ASIC found that between July 2015 and February 2016 Messrs Zhao, Ma and Zhang were knowingly or recklessly involved in the provision of false employer letters and/or pay slips to Westpac Banking Corporation to support 21 home loan applications lodged on behalf of customers of X Finance Group. 

• ASIC found that the companies nominated in the letters and payslips were based in China;
• customers concerned were not employed by these companies; and
• pay slips provided income figures that were much greater than the customers' actual incomes.

As a result of that conduct, Westpac financed over $17M in home loans in reliance on false documentation.

Messrs Zhao, Ma and Zhang have the right to seek a review of ASIC's decision to the Administrative Appeals Tribunal.

Background

Since becoming the national regulator of consumer credit on 1 July 2010, ASIC has investigated in excess of 100 matters relating to loan fraud and has achieved many enforcement outcomes against the offenders. The outcomes range from undertakings by persons to voluntarily leave the industry, to bans and prosecutions.

Examples of recent related outcomes include:

• Melbourne man charged over role in loan fraud conspiracy (17-380MR)
• Melbourne man sentenced to 5 years jail for role in hundred-million dollar home loan fraud conspiracy (17-337MR)
• ASIC permanently bans Perth mortgage broker (16-419MR)
• Former Aussie Home Loans mortgage broker permanently banned for loan fraud (16-242MR)
• ASIC bans mortgage broker and cancels licence (16-030MR)
• ASIC permanently bans Melbourne couple for contravening an ASIC banning order and engaging in misleading and deceptive conduct (17-434MR)
• ASIC permanently bans Victorian mortgage broker (17-357MR)
• ASIC bans mortgage broker from credit for three years (18-027MR)

ASIC's MoneySmart website has guidance for consumers using a mortgage broker, which includes:

• always checking ASIC Connect's professional registers to make sure the person or company they're dealing with is licensed
• never signing blank forms or leaving details for the broker to fill in later
• complaining if they suspect misconduct or are unhappy with the product or service they receive.